A monopoly firm maximizes its profit by producing 500 units output (so Q = 500). At that level of output, its marginal revenue is $32, its average revenue is $42, and its average total cost is $36.

Refer to Scenario. At Q = 500, what is the firm's total revenue?

a.$15,000

b.$18,000

c.$21,000

d.$22,500

What will change for a perfectly competitive firm if there are changes in its output without any change in the price of the product?

a.marginal revenue

b.average revenue

c.total revenue

d.marginal cost

When a monopolist increases the amount of output that it produces and sells, what happens to the price of its output?

a.It may only decrease if the demand is inelastic.

b.It may only increase if the demand is elastic.

c.It decreases regardless of the elasticity of demand.

d.It increases regardless of the elasticity of demand.

A firm has the following cost structure: